Late Wall Street rally leads global stocks higher as Europe experiences worst week since 2008

A gauge of stocks across the globe bounced back on Friday led by a late rally on Wall Street, after U.S. President Donald Trump freed $50 billion to tackle the novel coronavirus pandemic.

Oil prices shot higher after Trump, in the same speech, said that the United States would take advantage of the recent sharp decline in prices to fill the U.S. strategic reserves of oil “right up to the top.” Trump’s declaration of a national emergency over the virus gave a shot to stocks which had only partly reversed the sharp decline from Thursday.

European stocks snapped a sixday losing streak on Friday but made only a small gain over the course of the day as an initial rebound ran out of steam as the coronavirus sowed further economic turmoil.

The region’s stocks, which were earlier set for their best day since late-2008, swiftly pared gains after Spain declared a state of emergency over the outbreak, while reports that the United States would follow suit added to the pain.

The benchmark STOXX 600 index closed up 1%, following a record 11.5% crash on Thursday. The index was down 18% for the week, its worst weekly drop since the 2008 financial crisis.

Italian stocks, which have been among the hardest hit as the country has been the worst-affected in Europe by the coronavirus outbreak, closed up 7%, recovering from a more than seven-year low. Among the euro zone sub-sectors, resource stocks were the best performers for the day, bouncing back from a four-year low.

Oil and gas stocks were the worst weekly performers. They fell almost 30% in their worst week ever in the wake of the oil price crash. Travel and leisure stocks, which are have also come under immense pressure from the outbreak, shed 25.1% for the week.

This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.